NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Statutory Auditors’ report on the consolidated financial statements

Deferred tax assets related to tax losses carryforwards

Risk identified and main judgements

Our audit approach

The NatixisGroup recognizesdeferredtax assets at the reporting date in respect of tax loss carryforwardswhen it is considered likely that the tax entity concernedwill have future taxableprofits that tax loss carryforwards may be set off against, within a certaintimeframe. The estimate of the ability to generate future taxable profits within this period requiresthe exerciseof judgementon the part of management, including in developing tax business plans, to justify the recognitionof deferredtax assets. We identified this subject as a key audit matter due to the sensitivity of deferred tax assets thus recognized to the assumptionsand optionsadoptedby management. At December 31, 2017, €1,585 million was recognized on Natixis’ consolidated balance sheet in respect of deferred tax assets, including €1,084 million in tax loss carryforwards. Please refer to Notes 5.20, 5.23 and 6.8 to the consolidated financial statements for more details

We acquired informationon how budgetary data is compiled to estimate future taxable profits and assessedthe reliabilityof the process of drawing up the tax business plans that are the basis of our assessmentof the probabilityof the Group recovering its deferredtax assetsby: examining how the last business plan used as a basis of the a estimateswas developedand approved; checkingprojectedresults of previous years against the actual a resultsfor those years; assessingthe reasonablenessof the forecastassumptionsand a the inputs used by managementto estimatefuture profits and the recoverabilityof recognizeddeferred tax assets, based on our experience and knowledge of the Group’s activities and strategy. With the help of our specialistswe verified the appropriateness of the model adopted by management to identify existing tax loss carryforwards to be used, whether through deferred tax liabilitiesor future taxableprofits. Based on projections made by management, we carried out tests to check that deferred tax asset bases are properly calculatedand that the right tax rates are used. In particular,with the help of our specialists, we checked that account had been taken of legislative developments during the year involving changesin tax rates in Franceand the UnitedStates.

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Natixis Registration Document 2017